McKesson 2010 Annual Report Download - page 107

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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
101
In July 2008, the Board authorized the retirement of shares of the Company’s common stock that may be
repurchased from time-to-time pursuant to its stock repurchase program. During the second quarter of 2009, all of
the 4 million repurchased shares, which we purchased for $204 million, were formally retired by the Company. The
retired shares constitute authorized but unissued shares. We elected to allocate any excess of share repurchase price
over par value between additional paid-in capital and retained earnings. As such, $165 million was recorded as a
decrease to retained earnings.
Accumulated Other Comprehensive Income (Loss)
Information regarding our other comprehensive income (loss) is as follows:
March 31,
(In millions) 2010 2009
Unrealized net loss and other components of benefit plans, net of tax $ (162) $ (109)
Translation adjustments 168 (70)
Total $ 6 $ (179)
20. Related Party Balances and Transactions
Notes receivable outstanding from certain of our current and former officers and senior managers totaled
$16 million at March 31, 2010 and 2009. These notes related to purchases of common stock under our various
employee stock purchase plans. The notes bear interest at rates ranging from 4.7% to 7.1% and were due at various
dates through February 2004. Interest income on these notes is recognized only to the extent that cash is received.
These notes, which are included in other capital in the consolidated balance sheets, were issued for amounts equal to
the market value of the stock on the date of the purchase and are at full recourse to the borrower. At March 31,
2010, the value of the underlying stock collateral was $12 million. The collectability of these notes is evaluated on
an ongoing basis. At March 31, 2010 and 2009, we provided a reserve of approximately $4 million and $9 million
for the outstanding notes. Other receivable balances held with related parties, consisting of loans made to certain
officers and senior managers and an equity-held investment, amounted to nil and $1 million at March 31, 2010 and
2009.
We incurred $11 million in 2010 and $10 million in 2009 and 2008 of annual rental expense paid to an equity-
held investment.